THEVWSETTLEMENT
HANDBOOK:
Overview,Timeline,andActions
forAdvocates
TableofContents:
WhatistheVWSettlement?........................................................................................................................2
WhyDoWeCareAboutNOxandTransportation?......................................................................................3
TheEnvironmentalMitigationTrust............................................................................................................4
3ThingsYouCanDoToInfluencetheEnvironmentalMitigationTrustFunding.........................................5
VWSettlementandActionTimelines..........................................................................................................6
TABLES&APPENDICES.................................................................................................................................7
Table1–InitialEnvironmentalMitigationTrustFundAllocation............................................................8
APPENDIX1–TemplateLettertotheStateGovernor...........................................................................10
APPENDIX2–TemplateLettertoStateOrganizationsandAgencies....................................................12
APPENDIX3–Factsheets.......................................................................................................................14
1
WhatistheVWSettlement?
Fornearly500,000model2009–2016motorvehicles,Volkswagenknowinglyincorporatedcheating
computersystemsthatrunemissionscontrolsduringtesting,butdonotrunduringnormalvehicle
operation.1In2014,anindependentresearchstudyconductedbyWestVirginiaUniversityrevealedthat
theemissionsfromVolkswagencarswere15–40timesabovetheU.S.EPAcompliancelevel.2In
September2015,theU.S.EPAfiledacomplaintagainstVolkswagen,3withotherpartiessoonfollowing
suit.
Inordertosettletheallegationsofcheating
emissions,Volkswagenagreedtospendup
to$14.7billionforremediationofNOx
emissions.Amajorityofthismoneyisgoing
tovehiclebuybackandmodification
programs($10.03billion),whichdirectly
relatetoaffectedconsumers.Consumers
haduntilSeptember18th,2016toidentifyas
an“eligibleowner”andthereforequalifyfor
thevehiclebuyback/modificationsprograms.
$4.7billionofthissettlementmoneyisgoing
towardsNOxreductionprograms:TheEnvironmentalMitigationTrust($2.7billion)andtheZEV
InvestmentCommitment($2.0billion).Theremediationprogramstobefundedbythismoney,
particularlyactionsfundedbytheEnvironmentalMitigationTrust,arestillbeingplannedandhavemany
opportunitiesforyourinput.
EnvironmentalMitigationTrust
ZEVInvestmentCommitment
Amount
$2.7Billion
Ø Statespecificallocations
notedbelowinTable1
$2.0Billion
Ø $1.2billiontoU.S.
Ø $800milliontoCalifornia
Purpose
Supportprogramsandactionsthat
reduceNOxemissions
Supportprogramsandactionsthat
increasetheuseofzeroemission
vehicle(ZEV)technologyintheU.S.
PlanDeveloper
Administrator
States’designatedagent/beneficiary
(withinputfromthepublic)
Trustee&States’designated
agent/beneficiary
Volkswagen(withinputfromstates)
U.S.EPA&CaliforniaAirResources
Board
1
https://www.epa.gov/vw/all-30-liter-diesel-engine-vehicles-affected
Thompson,G.,etal.(2015)In-UseEmissionsTestingofLight-DutyDieselVehiclesintheUnitedStates.CenterforAlternative
Fuels,Engines&EmissionsWestVirginiaUniversity.
3
https://www.epa.gov/sites/production/files/2015-10/documents/vw-nov-caa-09-18-15.pdf
2
2
WhyDoWeCareAboutNOxandTransportation?
Nitrogenoxides,referredtoas“NOx,”areprecursorstoozone(O3),whichisalsoreferredtoas“smog.”
ThismeansthatwhenNOxareemittedfromsourcessuchasgas-fueledcars,thisprovidestheingredients
forozonetoform.
Asyoumayalreadybeaware,ozoneisapowerfulpollutantandhasdirectconsequencesonhumanand
environmentalhealth.Peoplemostatriskfrombreathingaircontainingozoneincludepeoplewith
asthma,children,olderadults,andpeoplewhoareactiveoutdoors,especiallyoutdoorworkers.4
EnvironmentalJustice
Whatyoumaynotbeawareof,
however,isthatozonepollutionis
particularlyimportantfor
environmentaljusticepurposes.
ThroughouttheUnitedStates,asair
qualitydecreases,overrepresentationofpeopleofcolor
increases.Asthegraph
demonstrates,worseairquality
correlateswithgreaterproportions
ofpeopleofcolor.
OpportunitytoDriveBigChange
ThetransportationsectorisoneofthelargestsourcesofNOxandothergreenhousegasemissionsinthe
UnitedStates.In2014alone,emissionsfromthetransportationsectoraccountedforoveronefourthof
allgreenhousegasemissions.5Thefundingfromthissettlementcanbeusedtohelpelectrifythe
transportationsectorineverystateoftheU.S.andeliminateoneofourbiggestsourcesofpollutionin
thecountry.Notonlywillthisimprovehumanhealth,butitwillalsomitigateimpactsonclimatechange
andimproveenvironmentalhealth.
4
5
https://www.epa.gov/ozone-pollution/ozone-basics#whatwherehow
https://www.epa.gov/ghgemissions/sources-greenhouse-gas-emissions
3
TheEnvironmentalMitigationTrust
YourgreatestareaofinfluencewilloccurwithdevelopmentoftheEnvironmentalMitigationTrust.Asan
advocateforcleantransportationandpublichealth,youcanensurethat(1)yourstatetakesactionto
receivethefundingitiseligiblefor,and(2)usesthisfundingineffective,impactfulways.
Toassistyouwiththismission,wehaveincludedanoutlineofyouractionstepsonthefollowingpage,
alongwiththenecessarytoolstosucceed.Theseinclude:
Ø Templatelettertoyourstategovernoridentifyingtheopportunitytoreceivefundsandencouraging
yourstatetodoso.
Ø Templatelettertootheragenciesandorganizationsinformingthemaboutthisopportunity.
Ø FactsheetsaboutpriorityareasoffundinginvestmentthatyoucanusetoadvocateforlowNOxand
ZEVprogramsthatyoubelievewouldbebestforyourstate:
o ElectricVehicleInfrastructure–ifNOxemissionsfromlightweightvehiclesareoneofyour
state’smainsourcesofpollution,considerencouragingyourstatetorampupyourEV
infrastructure.ThisincludesbuildingEVchargingstations,andisagreatwaytoencourage
consumerstopurchasemoreelectricvehiclesinyourstate
o ElectricPorts–ifyouareastatewithlongcoastlinesandmanyports,transformingyour
state’sporttechnologytoelectricwillsignificantlyreducetheamountofNOxpollutionin
yourstate’sair
o ElectricBuses–Ifyourstate’scitieshavepoorairquality,considerreplacingdieselbuseswith
electricbuses.Todaythetechnologyexistsforbusestotravel350milesbeforeneedingto
recharge,6tellyourstatethatthisisagreatopportunitytoinvestinacleanerschooland
publictransportationsystem.
Ø Webinar–therewillbeawebinarwithanoverviewoftheVWSettlement,discussiononengagement
opportunities,andchancesforyoutoaskanyquestionsyoumayhave.Thiswebinarwillberecorded
andsharedifyoucannotmakethedateofthelivewebinar.Youwillalsobeabletocallintoa
conferencelineandpagethroughaPowerPointpresentationifyouarenotcomfortablewiththe
webinarformat.
o OpenHouseWebinar(allinterestedparties)–November4th,10:30amPT/1:30pmET
6
Marshall,A.(2016)ThisNewElectricBusCanDrive250MilesOnOneCharge.https://www.wired.com/2016/09/new-electricbus-can-drive-350-miles-one-charge/
4
3ThingsYouCanDoToInfluencetheEnvironmentalMitigationTrustFunding
¨ Sendalettertoyourstategovernor–assoonaspossible,reachouttoyourstategovernorto
alerthim/heraboutthismulti-milliondollarfundingopportunityforyourstate.Thislettershould
tellthemabouttheirfunding,theirrequiredaction,andthedeadline.
§ Atemplatelettertosendtoyourstategovernor,highlightingthefundingamountand
relevantdeadline,isavailableinthisdocument(Appendix1).
§ Althoughthefinaldeadlinesarenotyetavailable,ifyourstatemissestheopportunityto
applyforitsportionoffunding,itwillbepermanentlyexcludedfromthefunding.
§ Foreachstate’sfundingallocation,seeTable1.
¨ SendletterstostateagenciesandreachouttoyourfriendlysisterenvironmentalNGOs–
assoonastheEnvironmentalMitigationTrustisfinalized(dateTBA),sendletterstoyourstate’s
departmentofenvironmentalprotectionandotherenvironmentallyinterestedorganizationsand
agencies.Thiswillincreasetheawarenessandpressure,ensuringyourstatetakesaction.
§ Atemplateletterdescribingthefundingopportunityanddeadlineisavailable(Appendix2)
¨ Advocateforprojectfunding–overthenextcomingmonths,workwithyourstates’
designatedbeneficiaryandotherinterestedorganizationstodirecttheflowoffundingtoareas
thatwillbesthelpyourstatereduceitsdependenceonoilandtransitiontowardselectric
technology.
Ideasofwhattoadvocatefor:
§
§
§
§
§
RampingupEVinfrastructureandpullingawayfromyourstate’srelianceonpetroleum*
Upgradingyourstate’sportswithelectricporttechnology*
Outfittingyourstate’spublictransitandschooltransportationsystemswithelectricbuses*
Buildingoutgovernmentfleetswithelectricvehicles,especiallytrucks
InvestinginNOxreductionprojectsthatalsosupportenvironmentaljustice
Ideasofwhattoadvocateagainst:
§
Dieseland/orAlternateFueled(e.g.CNG,propane,Hybrid)vehicleupgrades–althoughthese
optionsareavailableforpartialfunding,electricupgradesareallocatedmoresettlement
fundingandprovidegreaterNOxreductions*
*Factsheetsavailable–seeAppendix3
5
VWSettlementandActionTimelines
TheVolkswagenSettlementAgreementgainedpreliminarycourtapprovalonJune26th2016,anditisexpectedtobefinalizedmid-October.Once
finalized,knownastheSettlementAgreement“EffectiveDate,”or“ED,”theprocessofcreatinganEnvironmentalMitigationTrustwillbegin.
OncetheTrustisapproved,thedateofitsapprovalisthe“TrustEffectiveDate,”or“TED,”anditisthisdatethatwilldeterminethevarious
deadlinesbywhichstatesmustact.BelowistheanticipatedtimelineandrelativedeadlinesforStateandSierraClubChapteraction.
*Note*thatstatesonlyhave60daysfromthe“TrustEffectiveDate”tosubmittheirbeneficiarycertification,andstateshaveonly90daysfrom
whentheTrusteeapprovesthestate’sbeneficiariestosubmittheirBeneficiaryMitigationPlan.Inotherwords,ifyouwanttoinfluencehowthe
moneywillbespent,itwillbecriticaltoengageyourstatestartingimmediatelysincetheseeventsmaymovequickly.
TABLES&
APPENDICES
Table1–InitialEnvironmentalMitigationTrustFundAllocation
Initial Subaccounts
Initial Allocation ($)
Initial Allocation (%)
Puerto Rico
$7,500,000.00
0.28%
North Dakota
$7,500,000.00
0.28%
Hawaii
$7,500,000.00
0.28%
South Dakota
$7,500,000.00
0.28%
Alaska
$7,500,000.00
0.28%
Wyoming
$7,500,000.00
0.28%
District of Columbia
$7,500,000.00
0.28%
Delaware
$9,051,682.97
0.34%
Mississippi
$9,249,413.91
0.34%
West Virginia
$11,506,842.13
0.43%
Nebraska
$11,528,812.23
0.43%
Montana
$11,600,215.07
0.43%
Rhode Island
$13,495,136.57
0.50%
Arkansas
$13,951,016.23
0.52%
Kansas
$14,791,372.72
0.55%
Idaho
$16,246,892.13
0.60%
New Mexico
$16,900,502.73
0.63%
Vermont
$17,801,277.01
0.66%
Louisiana
$18,009,993.00
0.67%
Kentucky
$19,048,080.43
0.71%
Oklahoma
$19,086,528.11
0.71%
Iowa
$20,179,540.80
0.75%
Maine
$20,256,436.17
0.75%
Nevada
$22,255,715.66
0.82%
Alabama
$24,084,726.84
0.89%
New Hampshire
$29,544,297.76
1.09%
South Carolina
$31,636,950.19
1.17%
Utah
$32,356,471.11
1.20%
Indiana
$38,920,039.77
1.44%
Missouri
$39,084,815.55
1.45%
Tennessee
$42,407,793.83
1.57%
Minnesota
$43,638,119.67
1.62%
Connecticut
$51,635,237.63
1.91%
Arizona
$53,013,861.68
1.96%
Georgia
$58,105,433.35
2.15%
Michigan
$60,329,906.41
2.23%
Colorado
$61,307,576.05
2.27%
Wisconsin
$63,554,019.22
2.35%
8
New Jersey
$65,328,105.14
2.42%
Oregon
$68,239,143.96
2.53%
Massachusetts
$69,074,007.92
2.56%
Maryland
$71,045,824.78
2.63%
Ohio
$71,419,316.56
2.65%
North Carolina
$87,177,373.87
3.23%
Virginia
$87,589,313.32
3.24%
Illinois
$97,701,053.83
3.62%
Washington
$103,957,041.03
3.85%
Pennsylvania
$110,740,310.73
4.10%
New York
$117,402,744.86
4.35%
Florida
$152,379,150.91
5.64%
Texas
$191,941,816.23
7.11%
California
$381,280,175.09
14.12%
Tribal Allocation Subaccount
$49,652,857.71
1.84%
Trust Administration Cost Subaccount
$27,000,000.00
1.00%
Tribal Administration Cost Subaccount
$993,057.15
0.04%
$2,700,000,000.02
100.00%
9
APPENDIX1–TemplateLettertotheStateGovernor
Thetemplateletteronthefollowingpagedescribesthesettlementandtheanticipated
deadlinesthattheOfficeoftheGovernorwillneedtomeet.Assoonaspossible,thisletter
shouldbecompletedwithyourstatespecificinformationandsenttoyourstategovernor.
[@DATE]
The Honorable «GOVERNOR»
Governor of «STATE»
«ADDRESS_LINE_1»
«ADDRESS_LINE_2»
«CITY», «STATE» «ZIP»
Dear Governor «GOVERNOR»,
On behalf of [Your Organization], I am writing to urge you to take advantage of the multimillion dollar funding opportunity available to «STATE» for the purpose of investing in electric
vehicles and infrastructure. This money will flow from the Environmental Mitigation Trust,
created by Volkswagen as part of the recent Volkswagen Settlement. The exact amount is subject
to change until the settlement is finalized by the U.S. District Court for the Northern District of
California, expected in late October. Taking advantage of this money will mean less money sent
out of state for petroleum, more in-state jobs, better vehicles for your constituents, less carbon
pollution, and cleaner, healthier air.
In order for «STATE» to be given this funding, you, as our State Governor, must submit a
certification that identifies a Lead Agency (“Beneficiary”), no later than 60 days after the
Environmental Mitigation Trust Effective Date (“TED”). This is expected to take place in
January 2017. If «STATE» fails to submit beneficiary certifications by this deadline, we will be
permanently excluded from this funding. In addition, the beneficiary has no later than 90 days
from the date of beneficiary designation to submit its plan to distribute this funding, consistent
with the terms of the trust. This deadline is expected in the first half of 2017.
We would very much like to assist in identifying elements of this plan that will help further
improve our state’s public and environmental health. Please let us know the agency you identify
as the beneficiary so that we may help promote this important work.
Thank you for your attention and we encourage you to take swift preparatory action (i.e.
compiling required beneficiary certifications now). If you have any questions or require any
other information, please do not hesitate to contact us.
Sincerely,
[SIGNATORY]
11
APPENDIX2–TemplateLettertoStateOrganizationsandAgencies
Thetemplateletteronthefollowingpagedescribesthesettlementandtheanticipated
deadlinesthattheOfficeoftheGovernorwillneedtomeet,forthepurposeofinformingstate
agenciesandotherenvironmentalNGOsinyourstate.Assoonaspossible,thislettershouldbe
completedwithyourstatespecificinformationandsenttoleadersintheseorganizations.
12
[@DATE]
[FIRST NAME] [LAST NAME]
[ADDRESS LINE 1]
[ADDRESS LINE 2]
[CITY], [STATE] [ZIP]
Dear [SALUTATION] [LAST NAME],
On behalf of the [YOUR ORGANIZATION], I am writing to ensure that you are aware of the
multi-million-dollar funding opportunity now available to [STATE] for the purpose of investing
in electric vehicles and infrastructure. This money will flow from the Environmental Mitigation
Trust, created by Volkswagen as part of the recent Volkswagen Settlement. The exact amount is
subject to change until the settlement is finalized by the U.S. District Court for the Northern
District of California, expected in late October. Taking advantage of this money will mean less
money sent out of state for petroleum, more in-state jobs, better vehicles for your constituents,
less carbon pollution, and cleaner, healthier air.
In order for our state to be given this funding, our state governor must submit a certification
identifying a Lead Agency (“Beneficiary”), no later than 60 days after the Environmental
Mitigation Trust Effective Date (“TED”). This is expected to take place in January 2017. If
«STATE» fails to submit beneficiary certifications by this deadline, we will be permanently
excluded from this funding. In addition, the beneficiary has no later than 90 days from the date
of beneficiary designation to submit its plan to distribute this funding, consistent with the terms
of the trust. This deadline is expected in the first half of 2017.
Thank you for your attention and we hope you will support our governor taking swift action. If
you have any questions or require any other information, please do not hesitate to contact us.
Sincerely,
[@SIGNATORY]
13
APPENDIX3–Factsheets
WhenworkingwithagenciestodeveloptheMitigationPlanandtargetareasfortrustfunding,the
followingfactsheetsareavailableforyouruse:
Ø BenefitsofElectricVehiclesvs.Diesel/AlternateFueledVehicles
Ø ElectricVehicleInfrastructure
Ø ElectricPorts
Ø ElectricBuses
14